GoPro is laying off 7% of its employees

GoPro has announced that it has reduced its workforce by 7 percent in an effort to “better align resources to key growth initiatives.” This news comes at the same time as its weak guidance for the fourth quarter, where it provided preliminary financial results of $435 million in revenue — Wall Street analysts expected $520 million.

The specific number of people getting laid off was not disclosed, but GoPro said that at the end of 2015, it had more than 1,500 employees. By making this move, GoPro said that it’ll incur up to $10 million of restructuring expenses in the first quarter of 2016, most of it due to severance costs.

CEO Nick Woodman told CNBC in an interview that the cuts were “a difficult and deeply emotional decision,” but also a “necessary one.” In an email obtained by Re/code, Woodman blamed the layoffs on the “launch and pricing” of the company’s new $399 Hero4 Session camera:

Today’s announcement reflects the issues we faced in 2015, largely related to our launch and pricing of HERO4 Session. While we clearly made a mistake pricing Session at $399 (more specifically I made the mistake, it was my decision), I’m proud of how we responded. We recognized the problem, price adjusted to $299…recognized that wasn’t enough and price adjusted again to $199 which positioned Session as the best entry-level product we’ve ever made.

GoPro will be announcing its fourth quarter earnings on February 3.

Shares in the company were briefly halted in after-hours trading today after ending the day up 0.07 percent at $14.61. Following the news, the price has just tanked, where it’s currently down more than 26 percent. In the past year, GoPro has seen its stock price drop considerably, from a 52-week high of $65.49 down to its current state. And while it has made several product announcements, it’s also facing an investigation centered around whether its officers “violated securities laws by issuing misleading information to investors.”

In other company news, GoPro also revealed that senior vice president Zander Lurie has resigned his post at GoPro Entertainment and will be joining the company’s board of directors.